CHP Association

Unlock Savings: A Guide to Business Gas Price Comparison

Navigating the business gas market can be a complex task. But with a strategic approach, you can turn it to your advantage. By comparing business gas prices and considering the switch to green gas, you're not just making informed decisions that align with your environmental goals, you could also be tapping into competitive pricing.

Fixed business gas contracts offer a stable and predictable pricing arrangement, typically ranging from 1 to 5 years. They keep the agreed-upon gas rate constant, effectively shielding your business from price fluctuations in the wholesale gas market. On the other hand, a variable contract can change based on market conditions. Understanding these contract types is key in your quest for the most suitable and favourable options for your gas needs.

With our comprehensive business gas comparison service, you have the power to explore and compare different suppliers, contract durations, pricing structures and additional services. It's all about making the right choice for your business.

Importance of Comparing Business Gas Prices

Just as with any other business expense, you need to monitor your energy costs meticulously. That's why it's essential to frequently review your gas contract. If your business is nearing the end of its current gas contract, getting to grips with a business gas price comparison site can ensure you pay only for what your business needs. It's the ideal way to check the rates from multiple suppliers, which could help you secure a contract that is better aligned with your energy needs and budget.

Before delving into the sea of comparison tools, remember the crucial role of the Meter Point Reference Number (MPRN). This unique identifier accurately differentiates your gas meter from others in the area, ensuring precise readings and fair billing. It's the golden key to managing your gas supply effectively and tailoring your search on the business gas comparison site to your specific needs.

A variable gas contract may be your go-to if you're looking to embrace market highs and lows. Here, the gas unit rate isn't fixed. It fluctuates, honing in on market trends. But be careful - while this might mean reduced rates during a market dip, you could be paying more when prices soar. Contrast this with a fixed contract where the rate stays steady regardless of market changes.

Here are the advantages of using a business gas price comparison site:

  • Difference in price: Gas prices can vary significantly from supplier to supplier. Therefore, you may find more competitive rates that suit your budget.

  • Services: Additional services offered by various suppliers can be compared and chosen based on your business demands.

  • Fire off rollover contracts: Rollover contracts with less favourable terms can cost you more. By comparing prices, you'll likely avoid these potential pitfalls.

So when the time comes to review your business gas contract, a business gas price comparison site could be your safeguard against spending more than you need to. Consider your business's individual needs and navigate your way to a more cost-effective gas supply. It's the sure-fire way to ensure your business isn't burning money.

Factors to Consider When Comparing Business Gas Prices

When using a business gas price comparison site, there are certain critical factors you need to take into account. These factors determine how much you'll end up paying for your business gas supply. Let's delve deeper into some of these:

Contract Length

When you're comparing different gas suppliers, pay attention to the length of contract they offer. Long contracts can appear attractive because they usually offer lower unit rates. But that's a double-edged sword. The longer you're stuck with one supplier, the less flexibility you have. So, consider your business needs and pick a contract length that suits you.

Usage Patterns

Your usage pattern or how much gas your business consumes annually is another crucial factor in your decision-making process. This is also known as your annual consumption. If your business has high gas consumption, a supplier offering lower unit rates might be more beneficial despite a high standing charge. On the other hand, if your business operates only a few days a week or is seasonal, a no-standing-charge tariff, where you only pay for the gas you use, could be a better option. Keep in mind, unit prices may be higher on a no-standing-charge tariff.

Additional Fees

Finally, be vigilant about additional fees. Some gas suppliers have what is called a pass-through contract where non-commodity government and industry taxes and levies are passed on to you. This could lead to unexpectedly high bills. In these cases, your commodity gas is fixed, but these taxes and levies vary. They could be shown separately on your bill or built into the unit rate and standing charge. Be sure to factor this into your comparison.

And remember, getting off a deemed tariff — the most expensive tariff, usually used when you've just taken over a property — should be your priority. Make the right choice for your business needs by comparing carefully and considering all factors.

Utilising a business gas price comparison site can be remarkably helpful in securing a cost-effective gas supply. Just ensure you're approaching the prosses with the right knowledge and awareness.

Top Tips for Finding the Best Business Gas Price Deals

As you navigate the business arena, it's essential to find strategies that will keep your financial journey smooth and resourceful. Among these, the smart comparison of business gas prices can prove to be beneficial. Here are some constructive tips to find the best business gas price deals.

Research Different Suppliers

Understanding the landscape of gas suppliers is a fundamental step in obtaining the best deals. Explore different suppliers and their offers to find the one that matches your business needs the best. It takes only a few minutes to compare gas suppliers' prices, yet this straightforward action can drive significant cost savings for your enterprise.

Having a recent energy bill to peek at will prove crucial in this phase as it'll show your actual usage. When exploring options, be mother-sharp with the types of contracts, pass-through contracts can cause significant variation in your bills throughout their duration due to non-commodity maintenance, government taxes, and industry levies.

While you're exploring, remember to stay away from Deemed Rate tariffs. They're usually the most expensive and are often encountered when taking over a property. It's strongly advisable to switch from this tariff as soon as possible.

Negotiate with Suppliers

After researching, it's time to bring out your negotiations card game. When you have your top picks, don't be shy to negotiate the terms with your potential suppliers. Learning to effectively negotiate will empower you to control both costs and utility services.

Sure, running a business can be time-consuming, and you might not find the time to negotiate. Yet, this step is too important to be overlooked or hastily handled. If you're pressed for time, consider employing the services of a quality business gas price comparison site. They often offer full services, eliminating much of the stress and time investment on your part.

Consider Renewable Energy Options

Renewable energy is not only good for our planet but also increasingly cost-effective. Plenty of suppliers provide affordable renewable energy plans that can also help reduce your business's carbon footprint.

Small independent energy suppliers like Bristol Energy are gaining popularity with their transparent contracts and dependable service provision. Such suppliers often provide diverse contracts including low fixed-rate tariffs for more predictability, and pay-as-you-go plans for flexibility. Their customer service is often lauded, making the switch to renewable energy suppliers even more appealing.

Employing these tips will begin your journey to realising substantial savings on your business gas expenditure. As you continue to carry out regular comparisons and adapting to changing rates, you'll become more adept at securing favourable deals.

Key Takeaways

  • Comparing business gas prices is essential for monitoring and managing your energy costs, reducing unnecessary expenditure, and tapping into more competitive rates.

  • Businesses can choose between fixed and variable gas contracts; the former offers stable and predictable pricing, while the latter changes based on market conditions and could offer cost benefits in a market dip.

  • The Meter Point Reference Number (MPRN) is a vital tool for managing your gas supply and ensuring accurate readings and fair billing.

  • Usage patterns, contract length, and additional fees are critical factors to consider when comparing business gas prices. Understand your business needs first and then choose a contract length and supplier accordingly.

  • Using a business gas price comparison site significantly eases the process, allowing you to explore different suppliers, contract durations, pricing structures, and additional services. It further aids in negotiating with suppliers for better terms.

  • Considering renewable energy options could both benefit your business financially and align with your environmental goals. More companies are offering affordable renewable energy plans, making the switch a viable and cost-effective option.

So you've got the scoop on how to get the best business gas prices. Regularly comparing prices, researching suppliers, and negotiating terms are key. Don't forget about renewable energy options either. They can offer substantial savings and help your business reduce its carbon footprint. Remember, Deemed Rate tariffs are a no-go - you can find better deals elsewhere. Stay informed, stay savvy and your gas costs will thank you. With the right approach, you can secure a deal that's as good for your finances as it is for your peace of mind. Now it's over to you. Start comparing, and start saving.

Frequently Asked Questions

Who is my business gas supplier?

Your business gas supplier can be identified by using your Meter Point Reference Number (MPRN), a code unique to your property. Once you have your MPRN, you can use the Meter Number Helpline (08706081524) or the Find My Supplier service via your postcode and additional required details.

Do businesses pay more for gas?

Business gas prices can be cheaper than domestic gas rates. This is influenced by the size of your business and the quantity of gas you consume.

Are business gas prices capped?

No, business gas prices are not capped. The energy price cap that is commonly known applies only to home energy and does not affect business tariff prices.

What are current business gas rates in the UK?

Presently, business gas rates in the UK vary by region. For example,

  • Southern England: 7.6p per unit, 66.2p daily standing charge.

  • Scotland: 7.8p per unit, 72.9p daily standing charge.

  • North Wales, Merseyside, and Cheshire: 7.9p per unit, 75.1p daily standing charge.

  • South Wales: 9.4p per unit, 73.5p daily standing charge.

How much is business gas per kWh in the UK?

As of the period from 1st January to 31st March 2024, the energy price cap per unit and standing charge for gas is 7.42 pence per kWh and 29.60 pence for the daily standing charge.